ACCORDING TO THE FEDERAL RESERVE’S SURVEY OF CONSUMER FINANCES, THE MEDIAN AMOUNT FAMILIES IN THE UNITED STATES HAVE IN RETIREMENT SAVINGS TOTALS ONLY $65,000. Furthermore, a financial industry survey in 2023 estimated that Americans are only saving 78 percent of what they will likely need in retirement, and more than half of all families are on pace to be unable to afford essential living expenses in retirement. Smaller businesses may struggle to provide cost-effective retirement plans to employees, with only 40 percent of companies with less than 100 employees offering any. This void impacting working households will only increase without action as families struggle to save for retirement, rising costs, and economic uncertainty. Enter the states. Already experienced at savings fund management for non-state employees via the expansive 529 plan system of tax-advantaged savings for educational costs, many states are examining ways to implement a similar fund for low and middle-income workers to relieve the burdens on smaller employers while assisting families with creating self-sufficient plans for retirement.

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